Pain & Pleasure

http://www.grantthornton.com/static...white paper/Why are IPOs in the ICU_11_19.pdf

While it is impossible to establish cause and effect, it is reasonable to hypothesize that the Dot Com Bubble masked an underlying pathology: That the explosive growth in sub-$25 commission-per-trade, self-directed online brokerage accounts brought unprecedented investment into stocks, helped to cause the Bubble and destroyed the very best stock marketing engine the world had ever known. Retail stock brokers were chased from the no-longer sustainable $250 (and higher) commission-per-trade business of traditional stock brokerage to become fee-based financial advisors (asset gatherers).

So long as the IPO market remains shut, it is bye-bye banking for the lucky survivors still standing. Given your propensity for self-directed trading, you are being blamed for the bubble, the death of the "very best stock marketing engine the world had ever known", and the subsequent demise of the IPO market. This means that you are in fact to blame for loss of jobs on Wall Street. Tsk tsk tsk! Elite Trader indeed!
 
http://online.wsj.com/article/SB123414304204261913.html

For international students studying in the U.S., this year's search is even more devastating. Work-visa restrictions coupled with dwindling recruiting opportunities have left people like Boston University student Gurjinder Gill, 32, without many choices.

Mr. Gill, a former engineer from India, says he hasn't been called for a personal interview and is now seeking "anything available in the market which complements my strengths." Mr. Gill and his wife, who is in dental school, sold their house in India so they could pay their graduate-school tuition.

Poor fella, they sold the house in India to move to the United States and now he cannot get a job. Ahh... recruiting drops at business schools and the world will end up better for it.
 
http://www.nytimes.com/2009/02/12/world/middleeast/12dubai.html?em

¡°I¡¯m really scared of what could happen, because I bought property here,¡± said Sofia, who asked that her last name be withheld because she is still hunting for a new job. ¡°If I can¡¯t pay it off, I was told I could end up in debtors¡¯ prison.¡±

With Dubai¡¯s economy in free fall, newspapers have reported that more than 3,000 cars sit abandoned in the parking lot at the Dubai Airport, left by fleeing, debt-ridden foreigners (who could in fact be imprisoned if they failed to pay their bills). Some are said to have maxed-out credit cards inside and notes of apology taped to the windshield.

Thinking of moving to Dubai to escape the misery in New York? :D
 
http://www.wnyc.org/news/articles/123779

BANKER 1: I still pay for it because I probably made more a month, than she made a year. There's such a discrepancy and she knows my package, which is pretty good.

REPORTER: The 34-year-old says he earned more than half a million a year at UBS. He lost his job a few months ago and says he isn't ashamed of telling people. A friend standing next to him, another laid off i-banker who wouldn't give his name, agrees.

BANKER 2: Hopefully the people that I'm dating aren't just in this game for what I can spend on dinner, or what I can spend on drinks. Hopefully there's a little more to it than that.

REPORTER: Both say they saved money during the boom years, so they're not too worried. In fact the guy, who pays for his girlfriend's clothes, says he's still planning to surprise her with a mini vacation for Valentine's Day. He's optimistic about his future.

BANKER 1: One of the reasons we probably went into banking is because we're pretty type A. We're pretty adamant. I think we're pretty much on the ball with stuff. You know, we've always been successful, and so finally you hit your first setback. That's fine. But we know that we're going to bounce back.

Living the lie, that is what life on Wall Street is all about.
 
http://www.nytimes.com/2009/02/19/nyregion/19bankers.html?ref=business

More on Bloomberg's plan to ¡®retrain¡¯ former Wall Street prima donnas. Who is he kidding? These people lived their lives as superbly adapted parasites and now you want them to become contributing and productive members of society? You expect them to start businesses and be entrepreneurs?

Throw $45 million away on a project that will generate no returns when New York City schools are falling apart and they have the cheek to say ¡°it could stimulate the creation of at least 25,000 jobs and contribute $750 million to the local economy.¡± What a fabulous return. Spend $45 million and get back $750 million. The man gives free money to the rich, or at least those who ought to be rich, but ignores the plight of the poor. What a world we live in!
 
http://www.nytimes.com/2009/02/23/nyregion/23wall.html?ref=nyregion

They now forecast that the financial services sector that powered the city¡¯s prosperity will shed 65,000 jobs as a result of the financial crisis. Almost half of them will come from the highest-paying pursuits like investment banking and the sales and trading of stocks and bonds, according to an analysis the city commissioned from the Boston Consulting Group.

But last week, Mr. Bloomberg laid out a very different vision of the city¡¯s future. Standing in a large, empty space a mile north of the financial district, he pinned hopes for a financial revival on businesses of a different scale: start-ups conceived and managed by the defrocked wizards of Wall Street.

Rather than write them off as losers in the casinos of capitalism, city officials are encouraging them to start over, the Silicon Valley way. As part of a $45 million program, the city will subsidize garage-size offices as hatcheries for their most promising ideas for new businesses in finance or other fields.

More on Bloomberg's misguided plan to turn parasites into entrepreneurs. Mike, if these guys wanted to earn money the hard way, they would never have joined the Wall Street racket. And oh, check it out. They used to rely exclusively on McKinsey for financial services industry related studies but have now turned to BCG. What happened? Those blue books from McK turned out to be baloney? :D
 
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